Sanctions Deepen Discount on Russian Crude as Benchmarks Advance

Sanctions imposed by the European Union and United States weighed heavily on Russia’s crude export earnings in 2025, with revenues reportedly falling about 20% year over year, according to data cited by the Financial Times. Pricing figures indicate that the discount on Russian crude relative to international benchmarks widened sharply to $24 per barrel in 2025, compared with an average of $15 per barrel in both 2023 and 2024. The steeper discount, alongside generally softer global oil prices, curbed budget inflows from Russian crude exports, while a firmer ruble further eroded the local-currency value of those dollar-denominated revenues. The pricing gap also underscores ongoing market segmentation between Russian barrels and mainstream benchmarks such as Oil – Brent Crude and Oil – US Crude, reflecting both policy constraints and elevated risk premia.

Over the past month, benchmark crude prices have moved higher, with Oil – US Crude gaining about 10.76% and Oil – Brent Crude advancing roughly 11.35%, suggesting that despite pressure on Russian exports, broader oil markets remain supported by supply management and geopolitical risk. From a short-term trading perspective, one-day technical analysis currently points to a Buy signal for Brent and a Buy signal for WTI, indicating near-term positive momentum even as the medium-term outlook continues to be shaped by sanctions dynamics, OPEC+ policy, and global demand trends. Investors can explore more updates, prices, and analysis across global markets at Commodities.